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(iv) Computers
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(iii) Many laws of WTO are unfavorable to the developing countries like India.
(iv) Certain clauses of WTO agreement on agriculture put restrictions on the provision of subsidized food grains
in India.
Q.3 What is trade barrier? How governments can use trade barriers?
Ans. Any kind of restrictions imposed on trade is called a trade barrier.
Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of
goods and how much of each, should come into the country.
Q. 4What is privatization and liberalization?
Ans. Privatization means allowing the private sector to set up industries which were earlier reserved for the public
sector. Removing barriers or restrictions set by the government on trade is called liberalization. Thus, privatization
and liberalization results in freedom from closed and regulated economy.
Q. 5How MNCs can spread their production?
Ans. MNCs can spread their production by:1. Setting up joint production units with local companies.
2. To Buy up local companies and expanding its production base.
3. Placing orders with small producers
Q.6 Mention three factors responsible for globalization.
Ans. (i) Growth of MNCs.
(ii) Growth of technology.
(iii) Development in transport and communication technology.
LONG TYPE QUESTION ANSWERS
Q.1What do you mean by Globalization? What are the effects of globalization in India?
Ans. Globalization is the integration or interconnection between the countries through trade and foreign
investments by multinational corporations (MNCs).
Positive impacts:1) Greater choice and improved quality of goods at competitive price and hence raises standard of living.
2) MNCs have increased investments in India.
3) Top Indian companies emerged as multinationals.
4) Created new opportunities for companies providing services like IT sector.
5) Collaborations with foreign companies help a lot to domestic entrepreneurs.
Negative impacts:1) Indian Economy faced the problem of brain drain.
2) Globalization has failed to mark its impact on unemployment and poverty.
3) Cut in farm subsidies.
4) Closure of small industries.
Q.2 What is WTO? What are the aims of WTO? What are the drawbacks of WTO?
Ans. WTO is World trade organization. It is an organization which is in favour of increasing the world trade
through globalization.
The aims of WTO are:
(i) To liberalise international trade by allowing free trade for all.
(ii) To promote international trade among the countries of the world in an open uniform and nondiscriminatory
manner.
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2(iii)
8(iv)
3(iii)
9(iii)
4(iv)
10(iii)
5(i)
6(iv)
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